HTG Molecular Diagnostics, Inc.

Second-quarter 2022 revenue was $1.5 million versus $2.1 million in Q2 2021. Cost of product and product-related services revenue was $1.0 million, unchanged year over year, though Q2 2021 included about $160,000 of employee retention credits that did not recur in 2022. Research and development expense was $1.8 million versus $1.3 million a year ago; operating loss was $5.7 million versus $4.1 million; and net loss per share was $0.54 versus $0.39. Shaun McMeans said Q2 revenue was entirely direct revenue, and HTP-related transcriptome kits and VERI/O services totaled $0.6 million, over 40% of overall revenue. The company ended June 30, 2022 with $14.1 million in cash, cash equivalents and short-term available-for-sale securities. In July, HTG amended its senior credit facility to remove the minimum liquidity covenant and prepaid $2.5 million of principal without penalty; remaining payments continue monthly through the original maturity date of December 1, 2023. Management did not provide formal quarterly or full-year numeric guidance, but said it expects momentum in 2022 to continue, with more customer interest in HTP and additional drug discovery milestones ahead.

John Lubniewski framed the quarter as strategically important, saying HTG is evolving into a disruptive hybrid life science drug discovery company. He said the company achieved all of its first-half development milestones and that the drug discovery program is “on spec and on plan,” while also acknowledging profiling remains constrained by slower-than-expected recovery in oncology trials. His tone was optimistic but realistic, emphasizing new customer dialogues, broader disease-area opportunities, and the view that the next 12 months could be transformational.

Shaun McMeans focused on the financial pressure from lower revenue and on steps taken to preserve liquidity. He detailed the quarter’s $1.5 million revenue, $1.0 million cost of revenue, $1.8 million R&D expense, $5.7 million operating loss, and $14.1 million cash balance, and noted that 2021 comparisons were helped by employee retention credits that did not recur. He also highlighted the July credit facility amendment that removed the minimum liquidity covenant and allowed a $2.5 million principal prepayment without penalty, underscoring the company’s efforts to manage cash burn and strengthen the balance sheet.

Analysts asked about the first peer-reviewed HTP publication and how visible management is into future publications; John Lubniewski said the company has visibility and expects roughly 3 to 5 additional papers. He also said HTP and the microRNA product will likely make up the vast majority of profiling revenue going forward, with legacy panels used mainly to finish existing work. Another question addressed whether HTP is being used beyond oncology; management said yes, noting they are now getting in front of more customers and exploring broader disease areas and sample types that could open larger cohorts than oncology alone.